Teranga Gold Corporation T.TGZ

RE:RE:2015 Annual Report & Just My Thoughts

[robey743]

Marketsense

First, I would like to say; my post was not/is not a thesis.

With all due respect, the reason I have made no specific comments about EDV on this message board is quite simple and easy to explain; I am not invested in EDV and prior to today, I have not perused their news releases or their Company Filings.

EDV’s recent reverse split and knowledge of same would normally give me cause to not become involved; the reason being, share price volatility – No, share price volatility does not happen all the time, but I have witnessed it often enough in the past to conclude that it’s not worth the trouble to dig below the surface, to see what’s good,,, or what’s bad.

Thankfully there are many more companies to invest in. But, seriously, investing in a company that has just enacted/completed a reverse split demands deep and thorough research; research that exposes all the little things and all the big things as well.

With all that said; I’ll take a brief look at EDV. Below find an excerpt from EDV Report. Let me know if the content is correct; if it is I will comment.

Now, my body is telling me to go to bed and my daily schedule demands that I do so.


ENDEAVOUR REVERSE SPLIT
5.1 Full Description of Material Change
 
The Transaction involves the acquisition by Endeavour, through Endeavour Resources, of all of the issued and outstanding ordinary shares of La Mancha Cayman from La Mancha in exchange for the issuance by Endeavour to La Mancha of approximately 177,061,572 Shares, subject to satisfaction or waiver of certain conditions, in accordance with the terms of the Share Purchase Agreement. Upon closing of the Transaction, La Mancha Cayman will be an indirect, wholly-owned subsidiary of Endeavour, existing Endeavour shareholders will hold approximately 413,143,668 or 70% of the issued and outstanding Shares and La Mancha will hold approximately 177,061,572 or 30% of the issued and outstanding Shares.
 
As part of the Transaction, Endeavour will acquire La Mancha's indirect 55% interest in Socit des Mines d'Ity S.A, which operates the Ity Gold Mine in Cte d'Ivoire, plus various regional exploration properties, and La Mancha will contribute US$63 million cash into the acquired businesses. La Mancha has also expressed an in-principle commitment to invest up to US$75 million in additional funds to support Endeavour's growth. On a pro forma basis, Endeavour will have an annual gold production rate of 580,000 ounces from five operations across West Africa, a strengthened balance sheet and further growth opportunities in Africa. The Transaction will immediately add to Endeavour's operating cash flow, increase its attributable mineral reserve and resource base by 22% and 23%, respectively, while also strengthening its balance sheet and funding position to pursue further growth.